2 disparate lawmakers lead inquisition of Enron fiasco

January 27, 2002|By Jill Zuckman, Washington Bureau.

WASHINGTON — As 11 congressional committees begin picking apart the Enron debacle, Democratic Sen. Joseph Lieberman and Republican Rep. Billy Tauzin are expected to emerge as the leading inquisitors in the greatest corporate implosion in recent years.

Lieberman, chairman of the Senate Government Affairs Committee, is a former attorney general from Connecticut who is at home with the minutiae involved in a complex investigation. The former vice presidential nominee and potential 2004 presidential contender is sober, ponderous and sometimes criticized for a touch of self-righteousness.

Tauzin, meanwhile, is a lawyer and storyteller who switches from English to Cajun with ease. Known as the "swamp fox" back home in the bayous of Thibodaux, La., Tauzin is a backroom dealer with a penchant for political bargaining.

As House Energy and Commerce Committee chairman, Tauzin has investigated Ford and Firestone for tire safety, the American Red Cross for handling of charitable donations, and television networks' coverage of 2000 election returns.

The lawmakers say they want to get to the bottom of a $60billion financial disaster that has robbed people of jobs, retirement funds and investments.

"Obviously, some heads are going to roll," Tauzin said in an interview. "Everything we're learning is pretty bad."

When all inquiries are completed, Tauzin said he expects civil penalties to be levied and possibly criminal charges filed against Enron and Andersen, Enron's former accounting firm. He expressed anger that important papers were destroyed at both companies after government investigations were launched.

"I was shocked to see the utter stupidity involved in the destruction of documents with a firm I had a lot of respect for," Tauzin said, referring to Andersen.

Although there are other committees and chairmen looking into the scandal, Lieberman and Tauzin will be front and center because their committees have primary jurisdiction for the overall inquiry. Other panels are more narrowly focused on pension-related issues, tax matters and other topics.

Despite Lieberman's and Tauzin's different backgrounds and political philosophies, congressional watchdogs say they have one important thing in common. Both received political donations from Enron and from other corporations with a stake in the investigation's outcome.

And that leads some good-government types to wonder what sort of hearings can be expected.

"Will these leaders do something that's shocking and act in the national interest and not . . . give even more favor to these particular industries that have wreaked havoc with the regulatory system?" asked Scott Harshbarger, president of Common Cause. "This is where people are going to measure their actions and not their words."

The two lawmakers say they have no reason to recuse themselves over legal contributions.

In recent years, Lieberman has received $2,000 from Enron while Tauzin got $6,484, according to records from the Center for Responsive Politics.

Lieberman also has received more than $100,000 in contributions from Citigroup, one of Enron's biggest creditors. Andersen contributed to the New Democrat Network, a group the senator helped found to support conservative Democrats like himself.

"He said, `Of course he's not influenced by $2,000 given two election cycles ago,"' said Leslie Phillips, Lieberman's spokeswoman, noting that the senator opposed items on Enron's legislative agenda, such as the president's tax cut and energy bill. "He's vowed to conduct a thorough and aggressive investigation."

Tauzin has received $57,000 from Andersen over the years. And during the past decade, Citigroup and J.P. Morgan Chase, which heavily financed Enron's operations, have contributed $20,050 and $30,850 to Tauzin, respectively.

"Our role is, friend or foe, to take on the job of uncovering wrongdoing," said Tauzin, expressing no regret about the contributions. "Perhaps friends are in for a tougher time when they do something wrong around here.

"It's a bigger disappointment," he explained. "It's the way you feel when someone you love does something to hurt you than when someone you don't know does it."